COMPETITIVE STRATEGY (BY MICHAEL PORTER)
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- Опубліковано 3 сер 2024
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The most important factor to consider before making a long-term stock market investment is whether the company you are looking at has a sustainable competitive advantage, which will allow it to be profitable for many years to come. Companies like Apple, Johnson & Johnson & VISA thrive, while companies like American Airlines, British Petroleum & Fiat & Chrysler barely scrape by. But why? That’s what you will learn in this video.
Michael Porter is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School and his Five Forces model on industry rivalry is one of the most extensively taught concepts in business schools around the world. For good reasons.
Playlist of more advanced stock market concepts: bit.ly/2QOANKP
Top 5 takeaways from Competitive Strategy:
0:00 Intro
01:02 1. Porter’s Five Forces
03:00 2. Threat of entry
06:34 3. Threat of substitution
08:21 4. Bargaining power of suppliers/buyers
11:34 5. Intensity of rivalry
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.
![Michael Porter's "What is Strategy?" Full Summary [Hipster Edition]](http://i.ytimg.com/vi/VpRNZFuJ_VU/mqdefault.jpg)
Playlist of advanced stock market concepts: bit.ly/2QOANKP
"The essence of strategy is choosing what not to do."
--Michael Porter
I usually never leave a comment but this is gonna be an exception. Thank you so much for this content. I'm not sure you even realise how valuable your work is to so many people interested in investing. And it's free! The way you mix in humour with actual academic takeaways makes it so enjoyable and not a chore to watch. Keep doing you bro. Build up that sustainable competitive advantage ;)
Thanks a million Isitha Wanniarachchi! This comment made my day! Cheers, hope I will be able to keep producing something that you enjoy.
I’m obsessed with your videos. I get a notification I watch immediately, thank you for sharing!
SketchbookHR I'm happy for your support! Hope to be able to produce more value for you in the future!
I do the same Sketchbook
by far the best and detailled video with many more insights than other available videos/articles online. And the quality of the graphis/audio is also on point. And all this in just 15 minutes.
Despite a classic theory in strategic competitiveness, it is still relevant to current business situation. Thanks .
And I believe it is still relevant as well in the future.
Simple and direct explanation, no jargon.
Greetings from india😁
Love the channel. Currently binge watching
Dude, you are killing it! Watched all your video twice. 🧠💯
Thank you! This is very informative.
My personal takeaways:
*The most important factor to look at while making atock market investment is to find out if the company has a competitive advantage Which will allow it to be profitable in many years to come..
A company that is performing well is a company with sustainable moat according to warren buffet
Keep up the good job mate.
You help lots of people with your videos 👍🏻
i love ur videos, those breakdowns on the points are precise!
Love the videos, they are all awesome!! You really need to compile PDFs of the info for purchase. Would love to see a summary of Expectations Investing too - cheers
Your channel clearly has a _durable competitive advantage_
This is very insightful indeed. Thanks so much for sharing
Another great production. The consistent high quality of your product has created a moat. Nice job. Again. Thanks.
Great explanation! Thanks!
Been waiting on new upload LET'S GO!!!
thanks for uploading
Do a video on traders guns And money
By Satyajit Das
Thats why in monopoly game board if you own four railroad you pretty much win the game
Thank you🤗❤
Waited so long for your video
Your summaries are just awesome and help me a lot.
Thank you❣️
Thank you Prasanna Pande! Hope to be able to return to the usual schedule of a video a week soon enough, but the stock market is more interesting than it's been for a while so I'm spending some more time there!
You have a great voice sir and excellent explaining skills. You are saving a lot of time required to read a book. Lots of love from India.
I appreciate it Prithviraj Chavan! I'm thankful for your support!
The Five Forces of Competition model is like a magnifying glass for businesses. Just as a magnifying glass allows you to zoom in on and closely examine small details, the Five Forces model enables organizations to focus on the specific competitive forces at play within their industry. It magnifies the factors that influence profitability and competitive positioning, helping businesses gain a clearer, more detailed perspective on their competitive landscape.
Keep it up ,nice and very helpful🤗
1:51 oh there comes the perfect Buffet voice over by my man! 🤘🏻😎
Please do a video on the books: Tax-Free Wealth and Start your own Corporation.
P.S. Love your channel, keep the good work!
I really like this channel. It's just like i read an almost whole book in 15 minutes, thank you! Do you have any sort of private group for investing tips, Q/A type stuff?
Honestly one of the best channels out there, thanks so much for these summaries
Rhodes thank you very much!
The Swedish Investor No problem! In awe of the amount of information in such short videos, if my content can become even 10% as informative I’ll be happy!
Have my brew ready for this one....
Cheers Sally!
@@TheSwedishInvestor You remembered lol... Another great video thanks Erik. ps I became monetized today! :-)
need english subtitle, please
Brother I would love to Tell you one thing that you are doing a great work keep on doing it I love your work very much and it's coming direct from heart but I would say that if you could put more information from the book and make video 2or3 minutes more longer it will be a great but keep on doing it never stop and please add book of marketing,sales and etc
Thank you. Love your channel. Wish you all the best. Waiting for more videos..
Cheers Praveen Kumar! I'm hoping to produce one for next Saturday!
Great video
Interesting!
the 'Chinese wall' 😂
03:41 - Just a correction: A monopoly is actually a company aligned with the state to create a legislative barrier of entry.
If there is no legislative barrier and a single company is increasing its profits, entrepreneurs will move resources from areas of low profit to this area of high profit, thus breaking the "monopoly". Supply X Demand Law 101.
João Farias we do not have the exact same definitions of the word :) I'm referring to a monopoly as a company that is completely dominating a single sector or industry. The statement about entrepreneurs moving resourcing to compete away the profits is a correct one, but some companies are very effective of making this a difficult/almost impossible task. The companies that can handle the Five Forces well sometimes end up in such monopoly-like situations.
Awesome vid as usual. I have been curious. What software do you use to create your whiteboard videos? Keep it up!
Competition is the sole reason why Tesla and are fantastic companies to invest in. Tesla is predominantly a power supplier, not a manufacturer. When you consider the vast versatility and diversity of them as a company you quickly realise there isn't a direct competitor - no other company is doing what they're doing, so invest.
Apple produces consumer tech products; yet whilst being in a very competitive industry, they thrive because they focus on user experience, a seamlessly-integrated-ecosystem and product quality over everything else. People don't buy AirPods because they're good earphones (quite the opposite considering the price), they buy them because they work seamlessly with their Apple devices. As mentioned in the video, people simply don't like to upset their workflow or learn new ways of completing the same tasks because there'll be an adjustment period where your performance is lower than it would've been by not changing. It's a literal example of "why fix what isn't broke?".
Learned about this in my strategic management class
Same here, it's actually more useful than I thought back than haha.
Yes, competitive advantage is key, but ultimately surely senior management will determine if the sustainable competitive advantage is retained? While it is true that the five forces will determine how profitable an industry is, but it is strategy determined by management that will determine if above average profits are achieved and continue to be achieved. The caveat is that I am excluding the disadvantaged competitor facing key issues with their Value Chain.
Thanks a lot for this one !! The threat of entry and the intensity of rivalry are the ones that talk to me the most !!! Of course we have to consider all the five !! All these books will be mine someday !! I'll pass by your channel ! Cheers 💪💪⭐
Cheers Jean Police! Yes, I'd say that competitive rivalry & entry (which do correlate a lot) should be considered first, together with substitutes. You can discard most companies for investment purpose by looking at these. Sometimes, in extreme cases, you'll have to do that with suppliers and customers too, but I think it isn't as common.
@@TheSwedishInvestor Wich remind me of a younger Warren Buffet looking for soda caps to compare... Of course I don't think it's that commun too. But, any extra extra tool on out belt always help !! 💪💪
Adding to my watch list selection system right away. Great video!
Can you put a video on "learn to earn" by Peter lynch. I think its important for all investors to know about it
Android isn't really that hard to learn. But if you like continuing paying for your storage in gold be my guest
Buffetology
This works perfectly for investing, but also for business and entrepreneurship. Great video.
I agree Ignacio Gomez Duran, if thought about on a higher level, this can definitely be used for entrepreneurship too. It kind of contradicts my own choices - being a UA-cam creator comes with basically no inherent competitive advantages, haha.
@@TheSwedishInvestor You create a lot of value for you community. It may be not a competitive advantage, but you have loyalty of your subscribers.
can we have the subtitles？
Love from india
Just find out your channel and has been enjoying your vods. Would love if you share your investing stories
Stay tuned, it will be here in due time :)
Great work bro ,keep up the great work and you will be the next Buffett of Sweden.
That, to me, is probably the highest sort of compliment one can get. Cheers Spizo Ngema!
Haha a smorgasbord of stock investing🤔🤔
Which tool do you use for your videos?
I don't usually comment but man do you make good content! Really helps a lot as one cannot read every book. And the best thing is that you're not selling a course and it seems you yourself are an investor who tries to learn and improve everyday. Btw do you invest in the US stock market or Swedish?
Harshraj Jadhav I appreciate the comment and support! Yes, I'm investing myself but it's been only in the Swedish market so far. That is probably going to change pretty soon though. Big thanks to mr global investor himself - Sir John Templeton - for that.
@@TheSwedishInvestor hey man best of luck for your future endeavours and keep making Banger content!
And don't sell a course jk..😄
Wow I actually teach his strategy at school and I am also taught the Five Forces. Never thought to use it in investing.
It's a powerful tool! Glad to hear that I could give you an alternative us for it!
thats why academic education is not of much use.
How branding creates a company's competitive advantage.
Can you please do a summary of whatever book that explains what is P/E and all the other stock market terms?
Hi Ann! Thank you for your suggestion. Explanation of different stock market concepts and language is a series that I may develop in the future, so stay tuned. For now, if you watch a few videos I think you'll be able to understand after a while depending on the context. P/E, for example, is how many $ you pay for the stock for every $ of earnings of the company. A company that costs $10m and has $1m in earnings has a P/E of 10 and one that costs $20m and has earnings of $1m has a P/E of 20.
Started this today. Finding it a difficult read, the language is quite complex
Can you do "Learn to earn" by Peter Lynch next pls.
Hello! I was wondering, how many hours does it take to make a video like this? Your work is awesome!
I appreciate it Constantin Popescu :) It takes a lot of time haha, but it is largely dependent on how long/difficult the book is
Great video!
Cheers Ignacio!
@@TheSwedishInvestor OMG YOU REPLIED MY COMMENT THIS IS GREATEST DAY OF MY LIFE :'DDDDDDDD
Suppose company ABC has a competitive advantage in production, and the CEO wants the company to have a competitive advantage in distribution. So how many ways are there to achieve this?
If ABC wants to build its own competitive advantage in distribution, what will it need to do?
I have my exam it would be great if there is anything pdf or some format of this mind mapped notes
Do you draw the animation yourself or do you use a software?
Will you do Learn to Earn by Peter Lynch, Little Book of Common Sense Investing by John Boogle, Deep Value by Andrew Tobias, Path to Wealth through Common Stocks by Phillip Fischer and Reminescence of a stock operator by Edwin Lefebvre soon? That would complete very well what you already published. Very unique and exhaustive channel by the way! I have seen almost every videos made by you (apart some personal growth books, I prefer Investment classics).
Alexis Benoit I agree that these books fit well with what's already on the channel, and so they may appear in the near future :) Stay tuned! And I appreciate your support, cheers!
could you make a video of top 5 business books you would recommend?
I might do! It all depends on which level you are at though. For instance, Security Analysis is great, but quite difficult to understand if it's the first business book you approach. I think One up on Wall Street is really great for beginners, and The Little Book that Beats the Market also. Common Stocks and Uncommon Profits is a good read after having read those two. Then perhaps try The Intelligent Investor, and then Security Analysis.
A company with high margins abd high roce has supplier side moat and company with low margins but high roce has demand side moat..🙁
I stop at 5:40 and hear "eeerrr...." hahahahahaha
We want subtitles
I will fix that, seems to have forgotten about it, sorry!
Also seems to be some problem with the subtitles for this one, will have to check it with UA-cam ..
I have the book and tried to read it, but it is bloody boring. It is a very important book tho, so thank you so much for this video.
Can you please please put video on Peter lynch books
I've got two of them on the channel! One up on Wall Street and Beating the Street. Check them out!
What tool is he using to create this comic like videos, which includes his informations beging drawn by the hand?
I'm not sure but I would love to find out! I think it could be doodly, or videoscribe
Hi , do you remember me . I had wrote you an email long time back.
I do remember Sarthakk Gangwani! It's been a few months though, right? Hope you are doing well.
Ayy
Considering how much you're teaching us about wealth, shouldn't you be like super rich and make tons of money?
Firsttt
GrimLock glad to see you in the comment section again! Cheers!
Please expand your summarisation beyond 5 takeways. I think tats too limiting. One reason i don't like your videos!!